Cathie Wood Says Software Is the Next Big AI Buying Opportunity. 2 Stocks You'll Wish You'd Bought if She's Right.
Earlier this year, Cathie Wood's Ark Investment Management released a set of forecasts on the potential of artificial intelligence (AI). The firm, which operates eight exchange-traded funds (ETFs) focused on different areas of technology, suggests AI could add a whopping $200 trillion to the global economy by 2030.
Ark says much of that added economic output will be driven by a productivity explosion for businesses using AI. It's capable of speeding up software programming, medical discoveries, and even insurance claims. Semiconductor companies like Nvidia have reaped most of the early financial benefits from AI because data center hardware is integral to AI's operations.
In a recent interview with Bloomberg TV, Wood said the next big AI opportunity is likely to be software. She estimates for every $1 in chip hardware Nvidia sells, software companies will generate $8 in revenue. According to Ark's forecasts, those software companies could reap a combined $14 trillion in revenue by the end of this decade.
Source Fool.com